Professional and General Liability Insurance

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Professional and General Liability Insurance - What is the Difference?

As a business owner, you have likely heard about professional liability insurance and general liability insurance. You may even have both policies in your small business insurance arsenal.

But what is the difference between the two, and do you really need both? Read on for all you need to know about these policies and how they are essential to your business.

Professional & General Liability Insurance - The Craven Agency

Professional Liability Insurance

Professional liability insurance covers you and your business from any errors, inaccuracies, or negligence you may make as a professional. Even the most experienced professionals can make a mistake, and if you are sued as a result of one, this is the policy that would pay for any damages incurred.

Let’s say you are a successful CPA and you own an accounting firm, for example. If you fail to file a client’s taxes on time and they incur a penalty from the IRS, you or your business can be sued. Your professional liability policy will pay for any legal fees that might result.

Another important distinction to make with professional liability policies is that you can be sued even if there was no mistake made on your part. If your client perceives you were negligent, whether you were or not, there could be grounds for a lawsuit. Carrying a professional liability policy is the best way to protect yourself against these types of scenarios. 

General Liability Insurance

On the other hand, general liability insurance protects you and your business from bodily injury or property damage that might occur due to your business activities. The type of damages this policy may cover include slip and falls, an illness that occurs from a customer using your product, libel, or slander. 

Differences Between Professional Liability and General Liability

While both policies protect you and your business from lawsuits, the difference between professional liability and general liability policies is what triggers the lawsuit.

General liability is broader in that it covers physical damage and personal injury such as libel, slander, defamation of character, etc…For example, this is the coverage that would come into play if a customer gets hurt on your property.

Professional liability generally covers financial damages that result from an error or omission that you or your employees may make as professionals. Medical malpractice is an example of a professional liability policy for Doctors. 

Do I Need Both?

Carrying both professional liability insurance and general liability insurance is typically a good idea for any business owner. Each policy has its own sets of coverages that can apply to most, if not all, businesses.

For a consultation of what is best for your small business, contact us. Our licensed professionals at The Craven Agency can recommend the best policies for all your small business needs.

Contact The Craven Agency today! Serving Shreveport, Bossier City, Minden, Ruston, Monroe and the surrounding communities in Louisiana and the Ark-La-Tex regions.​


We'd love to talk through any of your business or personal needs and build the right insurance policy for you.

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